QUESTION 4 Cordial Enterprise sells bottled drinks at RM3.20 each. During the year ended 31 October 2021, the business reports total sales revenue of RM1,280,000. The following total costs are extracted from the books of the business for the year: Direct materials Direct wages Variable production overheads Fixed production overheads Variable selling costs Fixed administration and selling overheads RM 320,000 240,000 160,000 200,000 80,000 128,000 Required: a. Compute the followings: i. Break even points (in units) and in value (RM). ii. Margin of safety (in units) and in value (RM). iii. Net income if the current sales level is maintained. (11 marks) b. In order to improve the financial performance of the business, two business proposals are being considered by the management of Cordial Enterprise: Proposal 1 The company will incur additional advertising cost RM40,000 per annum. The annual sales units are expected to increase by 20% as the selling price is reduced by RM0.40. Proposal 2 The company plans to pay the salesman a commission of RM0.30 on every unit sold to improve the sales volume by 25%. The annual fixed production costs will be reduced to RM180,000 per annum. As the accountant, you are asked to determine the effects of implementing the above proposals on the net income of the company and recommend which proposal should be chose. Explain your answer. (10 marks) Explain TWO (2) uses of CVP analysis. (4 marks) C. (Total: 25 marks) (TOTAL: 100 MARKS)